As we are nearing the end of another year it also appears we are nearing the end of an era.
While most of us have been the beneficiaries of the current era I can’t help but believe that the new era that is coming will be far more equitable and inclusive for the world- if done right.
I am certainly not talking about the plans of the WEF (World Economic Forum) or any of their corrupt bedpartners in the positions of leadership in most developed western nations. I believe that their climate BS- which they are using to steal private farms globally and likely trying to starve us into submission along with demonizing our way of life and depriving us of the energy we need to continue to thrive, will ultimately fail- hopefully sooner than later to minimize the damage that they are already causing.
For far too long we have had these unelected bureaucrats that have been dictating how things are going to work. Of course, they always make sure it is to the advantage of themselves and those closest to them while the masses wind up getting the short end of the stick.
The population of Africa has been held down by colonial powers that have been exploiting their natural resources and keeping people in poverty as they enrich themselves for centuries. Of course, all the central banks of today are basically colonizing all of the countries with their “money from nowhere” that they use to buy assets, manipulate prices (to their advantage of course), increase prices we have to pay for everything and then to top it off- they charge US interest for the “money” they created to buy assets to enrich themselves further. This is all happening when an increasing amount of the world’s population is starving because of rising prices and idiotic policies on energy and fertilizer use- which will lead to greater problems shortly.
These people have become so brazen that even though they produce NOTHING but purchasing power for themselves that they think they can impose terms on those producing the necessities of life. The NATO allies have recently put a price cap on Russian oil. It is possible that if they were dealing with a feeble-minded dictator who was fearful of losing power it possibly could have worked. Too bad they are dealing with Putin who actually has FAR more friends than we do at this time. Basically, all of the countries that actually produce goods and not computer blips or pieces of paper. They are banding together and will shortly be bowing out of the SWIFT system and trading goods with their own currencies that will be backed by the goods they produce rather than nothing but air.
It makes perfect sense to me that those producing goods should have a major say in the price they charge. Of course, Mr. Putin will sell to friends and not to enemies. Who do you think will win? The guy who has oil, gas, fertilizer and food or the folks who conjure up cash out of nowhere? Look for even more MAJOR civil unrest in Europe as they start to freeze and starve because of the “leaders” they have are leading them right off of a cliff. It would make FAR more sense to work for peace and cooperation than trying to make a point and dominate.
After that rant you likely have to be wondering why I believe that things will be getting better. The reason is SCO (Shanghai Cooperation Organization) BRICS (Brazil, Russia, India, China, South Africa +) The + is the real story because it includes Turkey, Saudi Arabia, Iran, Indonesia, Argentina, Nicaragua, Venezuela, etc. and EAEU (Eurasian Economic Union) Russia and many former members of the Soviet Union.
These entities are setting up an alternative system that will bypass the US dollar in international trade settlements. In the short-term this should lead to MASSIVE inflation in the western world. I believe that those who are prepared could become exceedingly wealthy and those unprepared could be in for a VERY rude awakening. My guess is that the idea of “American exceptionalism” will be exposed as nothing but a myth. The fact that we could “print money” and buy assets without having to produce goods ourselves gave us a massive advantage economically. The facts are that every fraud has its own demise built in. In our case it will be that we relied FAR too much on the “printing” and have now lost our competitive advantage and don’t produce enough of what we need but it also appears that we have lost the work ethic that made this country the great place that it was.
This money “printing” also leads to a loss of morality as people think they can get “something for nothing”. I remember growing up and if anyone asked what you wanted to be when you grew up it would be fireman, lawyer, doctor, police man, nurse, etc. Basically, all solid professions that enhanced the public good. In a recent survey on Tic Toc 57% or respondents- when asked that same question- wanted to be social influencers. Personally, I don’t even know what that is but it doesn’t sound like you would produce much that would benefit anyone but yourself.
It appears that most of the world’s population is now in on the manipulation and they are taking concrete steps to protect themselves. Most of the countries that I have mentioned above have been buying gold in record amounts but recently they have REALLY stepped it up. It appears that gold is going to be a major player in the new hard-asset regime that I see coming.
As I have written before I believe that we are witnessing the end of our current fiat (backed by nothing but more debt) system. The assets that have thrived for our lifetimes are, I believe, in grave danger going forward as people are likely to find out that all of the promises made by governments, companies and individuals are promises that are unlikely to be kept. One of the questions I seem to always ask is :”What is the VALUE of a promise that cannot- or will ot- be kept?”
It doesn’t take a rocket scientist to look at the numbers and conclude that there is NO WAY for current debts to ever be paid off with the currencies keeping anywhere near their current values- even though the US dollar has lost 98% of its purchasing power already since 1913- most of that since 1971. The last 2% will be the most painful part.
To me, hard assets and the companies that produce them are the only assets that I have confidence in right now. I believe that gold, silver, platinum and palladium are unrealistically cheap and the miners of gold and silver have never been more cheap vs. the price of gold in history. I also believe that many commodities are underpriced because many believe we are in recession and it will get worse. I agree BUT we do not have a DEMAND problem- we have a SUPPLY problem. Inflation= HIGHER PRICES. Personally, I want assets that have low prices and high value rather than high prices and low value. Over time I believe that buying low-priced value assets will set up for good returns going forward. Likewise, if you pay a high price and get little value your future returns will probably not be good.
Keep that in mind the next time you are chasing the latest whim that is being promoted.
Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.
Precious Metals, including gold, are subject to special risks including but not limited to: price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.
Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.